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| Section | Weight | Objectives |
|---|---|---|
| Types of Life Insurance Policies | 20-25% | - Term Life Insurance - Interest-Sensitive & Universal Life Products - Combination Plans & Policy Variations - Traditional Whole Life Products - Annuities & Retirement Products |
| New Jersey Insurance Laws, Rules & Regulations | 20-25% | - Licensing Requirements & Procedures - Policy Replacement & Disclosure Rules - Ethics, Fiduciary Duty & Consumer Protection - State Regulatory Framework & Jurisdiction - Trade Practices & Unfair Trade Laws |
| Application, Underwriting & Policy Delivery | 10-15% | - Underwriting Process & Risk Classification - Completing the Application & Disclosure Requirements - Do Not Call & Privacy Regulations - Policy Delivery & Legal Responsibilities |
| Taxes, Retirement & Advanced Concepts | 15-20% | - Business Insurance & Third-Party Ownership - Group Life Insurance - Retirement Plans & Tax Treatment - Social Security & Government Benefits |
| Policy Riders, Provisions, Options & Exclusions | 20-25% | - Required & Optional Policy Provisions - Common Policy Riders - Beneficiary Designations & Settlement Options - Policy Exclusions & Limitations |
1. The free look period for an annuity purchased from a local agent is at least
A) 10 days, and not more than 30 days, from the date of policy delivery.
B) 15 days, and not more than 45 days, from the date of policy delivery.
C) 30 days, and not more than 45 days, from the date of policy delivery.
D) 45 days, and not more than 60 days, from the date of policy delivery.
2. What is the purpose of the automatic premium loan rider?
A) Allows partial surrender of a term policy.
B) Guarantees the insured the right to purchase additional insurance without evidence of insurability.
C) The insurer will pay the premium if the insured is permanently disabled.
D) Protects the policyowner against an unintentional lapse of coverage.
3. A contract between two insurance companies that allows one company to transfer risk to a second company is known as
A) Excess insurance.
B) Reinsurance.
C) Coinsurance.
D) Surplus lines insurance.
4. One area in which errors are commonly made on life insurance applications and for which the incontestable clause does not apply is
A) State of residence.
B) Education level.
C) Age.
D) Occupation.
5. In order to receive fees other than commissions from a life insurance prospect, an insurance producer acting as a consultant must first
A) Obtain a signed written memorandum from the prospect stating the amount of compensation.
B) Obtain a written commitment from the prospect to purchase new life insurance.
C) Present a Comparative Information form to the prospect.
D) Present a Notice Regarding Replacement of Life Insurance form to the prospect.
Solutions:
| Question # 1 Answer: A | Question # 2 Answer: D | Question # 3 Answer: B | Question # 4 Answer: C | Question # 5 Answer: A |
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